Friday, 2 December 2016

Finance Fridays – The Autumn Statement

We were trying to spend as
little as possible for last week's Finance Fridays about Black
Friday. This week we are talking about another event that
happened last week – The Autumn Statement. Let's have a look at
what the new Chancellor of the Exchequer, Philip Hammond, has in
store for all of us.

After the annual Budget
statement each March the Autumn Statement is the second most
important financial statement. It has decisions in it which affect
both businesses and individuals.

Salary Sacrifice –
This has become popular among employees in recent years. In return
for giving up part of their salary an employee can receive in return
things such as computers, gym membership and private health care. One
of the benefits of having a lower overall salary is that you pay less
income tax and national insurance (as does your employer). This is
obviously something that the government wants to get their hands on.
This is will come into effect from April 2017. Some salary sacrifice
will be exempt such as pension contributions, child care vouchers and
the cycle to work scheme.

National Savings and
Investment Bond – With interest rates at a record low savers
are struggling to find accounts with a decent interest rate. In order
to benefit of the interest rate which be around 2.2% you will need to
agree to deposit your money for three years. The minimum amount you
can put in is £100 and the maximum is £3,000. The bond will be
launched next spring.

Fuel duty frozen –
For the seventh successive year it has been postponed. The chancellor
said it should save the 'average car driver' around £130 a year.

Rise in Insurance Premium
Tax – A third rise in 18 months means that Insurance Premium
Tax will go from 10% to 12%. This will affect all car, home, travel,
pet and private medical insurance policies.

Letting fee ban –
Letting fees are already banned in Scotland but this will now be
extended to take in the rest of the UK. Estate agencies can charge
tenants who rent one of the properties on their books for services
such as an initial letting fee, tenancy renewal and change of
occupancy. Time will tell if the estate agents and property
management companies will instead pass on the shortfall to the
landlords to pay instead, who may well pass it onto the tenants
anyway.

National Living Wage
– From April 2017 the National Living Wage for employees aged 25
and over will rise from £7.20 to £7.50. Good news for employees but
could be tough for small businesses to absorb.

Income tax – The
Income Tax threshold for 2017/18 will rise from £11,000 to £11,500.
Therefore anyone earning under £11,500 will not pay any income tax.

The last thing to be
abolished is the Autumn Statement itself. The Budget in March 2018
will be the last held in the spring with the Budget statement taking
the place of the Autumn Statement.

How will you been affected
by the Autumn Statement? Is it good or bad news for you?

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you want to join in with this week's Finance Fridays then add your
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allowed. Full detail here.
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Tuesday 6th
December 2016 to join in.

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I actually thought it was pretty pants. They gave to the people that didnt need it and yet again took more from the poor. yers fuel duty has been frozen, but what people do not remember if that car tax is back from April at a set amount rather than based on car emmisions, so our £0 tax (which we factored in to the car when we bought it) will now cost an additional £140 a year!

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